Sensex, Nifty flat; tyre stocks weak, Tata Steel falls 1%

1:45 pm Buzzing: Shares of BHEL gained 3 percent intraday on bagging a contract for thermal power project from EUAS in Turkey.

“BHEL has bagged a contract for rehabilitation of 3 units of electrostatic precipitators for the 430 MW Tuncbilek Thermal Power Project in Turkey on EPC basis,” said the state-run power equipment maker in its filing to the exchange.

The order, which is valued at euro 16.96 million, envisages dismantling, supply, civil works and erection & commissioning of the electrostatic precipitators.

EUAS is electricity generation company owned by the Turkish government. “Turkey has embarked on a renovation and modernisation programme of its old thermal power projects and the present contract is aimed at reducing the emission levels drastically,” said the company.

Seeing 25-30 percent upside potential in private sector banks and NBFCs, he remains overweight on them. Furthermore, he is positive on FMCG and autos while being underweight on the entire PSU pack due to lack of clarity on some issues.

In an interview to CNBC-TV18, he shares concerns over a further sell-off in crude price hitting market sentiment. Onto specifics, he feels JSPL may be underpriced going by fundamentals. Investors can buy into the stock at current market price with 2-3 years horizon.

Don’t miss: Kotak upgrades Bharti, sees 25% upside

The market is range bound with the Sensex is up 63.67 points at 27435.51. The Nifty is up 16.70 points at 8241.90. About 1321 shares have advanced, 1340 shares declined, and 126 shares are unchanged.

Coal India, NTPC, GAIL, BHEL and M&M are top gainers in the Sensex. Among the losers are Hindalco, Tata Steel, TCS, ICICI Bank and Infosys.

Shares of tyre companies like Apollo Tyres, Ceat and JK Tyre are under pressure as they have agreed to procure rubber from the domestic market at 25 percent higher price over international price to aid the fund-staved sector in Kerala. Analyst say margin expansion for tyre companies will be capped.

Volatility may rise due to expiry of equity derivatives on Wednesday while progress on key reforms such as the opening up of insurance and coal sectors and tabling of a bill on nationwide sales tax in parliament’s winter session that ends.